ABSTRACT
In A-L’s general conception, the state is ‘more than a collection of individuals’ (A-L, p. 365). It is not certain that where individuals are moral hazard-seekers, the bundle of them, acting in a perfectly democratic society, will behave in the interest of the public at large. Political agents may behave in their own interest, or the interest of some group or political party, which brings us into public choice theory and, ironically, to Arrow’s (1951) voting paradox and impossibility theorem.
